Weather among factors that led to €1.4bn offshore windfarm being discontinued
Tommy Tiernan said there were many more suitable sites and that there has to be more to our country 'than a utilitarian exploitation of where we live'. Stock image
A €1.4bn landmark windfarm project off the west coast was discontinued when studies showed it was not possible to ensure its survivability for technical, weather, environmental and engineering reasons, it has emerged in Commercial Court proceedings.
Three Galway businessmen, who were among seven individual and corporate investors in a company set up to originally progress the windfarm, are suing joint venture firm Inis Holding Co Ltd, indirectly owned by Corio Generation Ltd, which is a company within the Macquarie Group, and the Ontario Teachers' Pension Plan Board, over a share-purchase agreement related to the project.
The Sceirde Rocks Offshore Windfarm was to consist of 30 turbines more than 1,000ft high and 5km-11.5km off the west coast, with Carna in Galway the nearest settlement. It was hoped it could power 350,000 Irish homes and invest up to €70m in community initiatives.
The planning application has now been withdrawn. It had attracted some 177 third-party submissions, including from comedian and RTÉ chat show host Tommy Tiernan, who stated that there were many more suitable sites and that there has to be more to our country "than a utilitarian exploitation of where we live".
The three investors who are now suing Inis over the abandoned project are: Seosamh O'Laoi, of Baile an tSagairt, Spiddal; Padraig O'Laoi, a publican of Ballinahill, Lettermullan; and Bartley Lee, of Seacrest, Cnoc Na Caltrach.
They were among seven shareholders in Fuinneamh Sceirde Teo (FST) which was used for the initial development of the project.
They are seeking declarations including that Inis breached a covenant in a share-purchase agreement by failing to use reasonable efforts in good faith to progress works on the windfarm project as well as damages for breach of contract and/or covenant.
Inis intends to fully defend all claims and does not believe it has any liability.
The case was entered into the fast-track Commercial Court list on Monday by Mr Justice Rory Mulcahy on consent between the parties.
The judge adjourned the matter to October and granted liberty to mention it before that date after being told the parties planned to go to mediation.
In an affidavit seeking entry to the commercial list on behalf of the defendant, Inis director Guillermo Martinez-Navas said that under the terms of the July 2021 share purchase agreement, Inis agreed to make an initial payment to the investors, or vendors as they are now called, followed by payments on the achievement of certain development milestones.
In the years following the agreement, FST expended considerable time and some €70m in progressing the project including obtaining maritime area consent under maritime planning law.
Mr Martinez-Navas said a critical part of that work were extensive surveys of the project site. These included wind, current, and wave measurements and preliminary front-end engineering design studies.
Ground modelling and other assessments, undertaken in the first quarter of 2025, which included results of extreme weather events, showed "it was not possible for the project to be delivered in a manner that ensured the safe, sustainable execution and operation" and/or the long-term integrity and survivability of its project, he said.
Inis decided to discontinue the project.
Inis offered the vendors the opportunity to buy back FST for a nominal consideration of €1, which the defendant said was reflective of the lack of any value in the project as a result of the challenges it faced.
There was engagement and correspondence between the parties but last September, the vendors said that in discontinuing the project, Inis had breached covenants in the share purchase agreement.
There followed various efforts to find a third-party buyer for the companies involved in the project, without success. A dispute also arose over an Inis decision to withdrawn various consent applications related to it, including the planning application.
In February, the three businessmen issued High Court proceedings.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
